of the United States, being a corporation or partnership which is not resident in Pakistan
for the purposes of Pakistan tax;
(i) The term "resident of Pakistan" means any person (other than a citizen of the
United States or a United States corporation) who is a resident in Pakistan for the
purposes of Pakistan tax and not resident in the United Slates for the purposes of the
United States tax. A company is to be regarded as a resident of Pakistan if its business is
managed and controlled in Pakistan;
(j) The terms "resident of one of the contracting States" and "resident of the other
contracting State" mean a person who is a resident of the United States or person who is a
resident of Pakistan, as the context requires;
(k) The terms "United States enterprise" and "Pakistan enterprise" mean,
respectively, an industrial or commercial enterprise or undertaking carried on in the
United States by a resident of the United States and an industrial or commercial
enterprise or undertaking carried on in Pakistan by a resident of Pakistan; and the terms
"enterprise of one of the contracting States" and “enterprise of the other contracting
State” mean a United States enterprise or a Pakistan enterprise, as the context requires;
(1) The term "industrial or commercial profits" does not include rents or royalties
in respect of motion picture films or of oil wells, mines and quarries, or income in the
form of dividends, interest, rents, or royalties, or fees or other remuneration derived by an
enterprise from the management, control or supervision of the trade, business, or other
activity of another enterprise or concern, or remuneration for labor or personal services,
or income from the operation of ships;
(m) The term "permanent establishment", when used with respect to an enterprise
of one of the contracting States, means a branch, management, factory or other fixed
place of business, but does not include an agency unless the agent has, and habitually
exercises, a general authority to negotiate and conclude contracts on behalf of such
enterprise or has a stock of merchandise from which he regularly fills orders on its behalf.
In this connection-
(i) An enterprise of one of the contracting States shall not be deemed to
have a permanent establishment in the other contracting State merely because it
carries on business dealings in that other contracting State through a bona fide
broker or general commission agent acting in the ordinary course of his business
as such; and
(ii) The fact that a corporation or company which is a resident of one of
the contracting States has a subsidiary corporation or company which is a resident
of the other contracting State or which is engaged in trade or business in such
other contracting State (whether through a permanent establishment or otherwise)
shall not of itself constitute that subsidiary corporation or company a permanent
establishment of its parent corporation or company.
(n) The term “taxation authorities” means, in the case of the United States, the
Commissioner of Internal Revenue as authorized by the Secretary of the Treasury and in
the case of Pakistan, the Central Board of Revenue or their authorized representatives;
and, in the case of any territory to which the present Convention is extended under
Article XVIII, the competent authority for the administration in such territory of the taxes
to which the present Convention applies.